Reports say Amazon, the world’s largest e-commerce company, will see its employees’ annual salary drop by up to 50%.
Citing internal sources, the Wall Street Journal (WSJ) reported that employees’ annual salaries are expected to fall by 15% to 50% more than expected this year. It added that this was due to a drop in the company’s stock price.
Amazon employees’ annual salary consists of stocks paid by non-cash companies. The stock price plunged 35% from a year ago. The share of stocks included in the annual salary is not known, but it is said to be larger than other big tech companies such as Apple and Google.
Amazon said, “Our compensation model is to encourage employees to think like their own company, linking the entire compensation to the company’s long-term performance,” adding, “This has worked very well from a long-term perspective, although there is a risk to stock price fluctuations.”
Meanwhile, Amazon announced last month that it would fire 18,000 employees due to economic uncertainty.
According to Business Insider on the 21st (local time), Amazon employees, the world’s largest e-commerce company, have urged CEO Andy Jash to reconsider his recent order to return to the office.
This comes after CEO Josh ordered on the 17th to “go to the office more than three days a week” from May 1. Amazon has left its employees at work to each manager since COVID-19.
Amazon employees have opened a separate room inside their business messenger slacks to share concerns about the new return to work policy.
Earlier on the 16th, more than 2,000 employees of Walt Disney, a global content company, also filed a petition with the management to “reconsider the guidelines for returning to the office.”
Earlier this year, Disney CEO Bob Iger protested the order that he should work at the office four days a week from next month.